The clothing industry is competitive as it as. On top of that, if the retailers are leaking revenue, it certainly is a huge loss. And it’s something that needs to be fixed with urgency.
Are you one of these retailers?
Here are five ways how clothing retail business owners lose revenue unknowingly:
1. Not retaining old customers
Not focusing on customer retention is one of the biggest mistakes retailers make.
Retaining existing and old customers is much cheaper and more rewarding than newer acquisitions.
You can easily generate huge revenue by targeting the customers who have already engaged with your business.
2. Trying to save marketing budget
Some expenses are essential to unlock more rewards.
Besides, spending money on marketing, if done right, isn’t really an expense – it’s an investment.
Sadly, so many clothing business owners do not even spend on marketing. And those who do, they act frugal and try to save money.
Don’t be one of them.
Create a thorough marketing plan, allot enough money into it and smartly execute your moves. It will blow your sales, bringing you huge revenue.
3. Selling poor quality clothes
This is a big problem.
When you sell poor quality clothes, not only will the customers purchasing it right now will not return again, it will also hurt your store’s brand. And if the word-of-mouth spreads, it will severely hurt your business.
So, make rigorous efforts to bulk the best quality apparel. Work with only the top wholesale clothing Germany or US-based manufacturer that’s reputed for good quality.
4. Not customizing their bulk
When you’re trying to beat the crowd of competitors, the first rule is you must out-stand them.
Question is: how can you out-stand your competitors when you’re offering the same types and varieties of apparels like them?
This is where customization comes in. You must personalize your clothing bulk, per your unique needs and requirements, that shines through the crowd and become your USP.
This means you must work along with wholesale clothing Europe or US-based manufacturer that offers flexible customization option.
5. Pricing their collection very high
This is quite a no-brainer. If you’re selling at a high price, fewer people will buy from you. And this will hurt your revenue.
Now, we get it: you want more profit. This makes pricing your collection at a higher margin quite necessary.
The key here isn’t selling it at a premium price – the key here is being smart in your pricing strategy.
Use discounts and exclusive offers to trigger potential buyers psychologically and to increase sales volume that covers the cost you incur by lowering your selling price.
These are five ways of how clothing retailers lose money without even knowing it.
If you’re making the same mistakes, take note and make fixes immediately. You can make so much revenue – all you’ve got to do is eliminate the errors and make smarter moves.